Monday, January 23, 2006

Oil Price Increase Coming?

The average price of a gallon of gasoline in the Racine, WI area have been about $2.39 for a decent amount of time here, so now is a great time to reevaluate my predictions for gasoline prices in 2006.

June 15, 2005: With the premier of my blog, I stated -
"This (article from Drudge) combined with the information released from this years Bilderberger meeting stating from multiple sources (Henry Kissinger being one) that crude would at least double perhaps triple over the next year."
At the time I started writing, the price of crude was weighing in at $55 a barrel and has recently hit $69 again. This is slightly lower than the $71 price in wake if hurricane Katrina, but represents an increase of 25% with the most aggressive price increases yet to come.

Now, it is hardly a noble feat to predict a continued increase cost in a bullish market, but I must remind the reader that at the time I predicted this many so-called "experts" were stating that oil prices would either hold or decrease. In addition to that, I was not merely predicting that prices would continue upwards, but would double.

The Real Effect
The upcoming war with Iran seems poised to trigger yet another summer push in crude prices like we have seen for the last several years. In order to achieve the stated goal of doubling crude prices, a drastic push will be needed early. I believe that is coming very soon and that we have already seen the precursors to that push. Look for gas prices to rise to roughly $2.70-$2.85 over the next few months to set the pace for $4 gasoline this summer.

Edited for appearance and labels on 4/23/2010.

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